The impending hike in water and power rates, according to Professor John Gartchie Gatsi, dean of the University of Cape Coast’s School of Business, will have a substantial effect on the inflation rate of the nation.
On Monday, August 15, the Public Utilities Regulatory Commission (PURC) announced a 27.15% increase in power rates and a 21.55% increase in water rates, both of which will take effect on September 1, 2022.
The choice was made in response to requests for rate increases of 148% and 334% from the Ghana Water Company Limited and the Electricity Company of Ghana, respectively.
Professor Gatsi stated in an interview with ATL FM NEWS that a rise in Ghana’s inflation rate should be anticipated as a result of these increases in tariffs.
“Inflation rate will go up because there is a pass-through effect for the time that it is implemented from September 1, 2022, to about two-three months. So, it promises to increase inflation further,†he said.
Meanwhile, the Executive Secretary of PURC, Dr. Ishmael Ackah has assured Ghanaians that his outfit will continually monitor the activities and operations of the utility service providers to ensure that they provide value for money.
He said the quality service delivery of utility providers will also be closely monitored.
To this end, he said after this tariff review, the commission will implement its quarterly tariff review in line with its research and guidelines.
Source: Ghanaweb